Phase 1 Palmetto Avenue Streetscape funding explained

Pacifica Tribune/Jane Northrop, Staff writer, 3/24/16. "Rediscovered funds to help pay for Palmetto Avenue Streetscape project."

But where were the bank statements,
or periodic "third party" statements?.

Good news, it didn't cost
$1.5 million to find $1.5 million.

.... " 'The Certificates of Participation, COPs came out after Proposition 13. It’s a lease to raise capital,'  Peter Wong, financial advisor to the City said. 'Most cities set up a capital bank account, but in this case, it was set up by a third party. Still, it should have been on the city’s books. It should have been transferred over. There was $1.2 million in 2006, in 2008, there was $1.5 million raised.'

....  City Council unanimously approved spending these funds on the streetscape, plus $375,000 to cover the 15 percent inflation for construction. 'We would lose it if we can’t make it come to fruition,' said City Manager Lorie Tinfow.

In October, $1 million in grant funds will potentially be available for the city to compete for to be put to use on the streetscape, Assistant City Manager (CPA) Lorenzo Hines, Jr.  said. The COP debt is repaid through revenue, 25 percent from the gas tax income and the rest from the general fund, said Hines.

Usually three to six months is the normal timeline for this kind of transactions, but the city lost track of it for the last eight years. 'The city got out of this in 2008 due to the financial crisis,' Wong, said." Read article.

Reference.  City Council meeting, 3/14/16, Item 3. 
Related.  The City has determined sloppy accounting does not rise to the level of fraudulant or manipulated accounting. Sage Forensic Accounting, "What is forensic accounting?" "Also known as investigative accounting, forensic accounting is a detailed examination and analysis of financial documents and records for use as evidence in a court of law. The term “forensic accounting” can refer to anything from the execution of a fraud analysis to the recreation of “true” accounting records after the discovery that they have been manipulated."

Note photographics. Man from Coin Desk/Matthew Spoke, 7/11/15, "How Blockchain Tech Will Change Auditing for Good." Rabbit facepage image from Pinterest/Pets4homes.co, UK. 

Posted by Kathy Meeh